Affordable Housing Underwriting at Bank
I recently came across an opportunity to work as an Affordable Housing Underwriter and wanted to get some insights from the community.
Though I’m interested in acquisition at REPE, it’s been challenging to land an acquisition role right now, and I only have an offer for an AM role at a small shop. Wondering if it’s better to start in REPE AM or as an Underwriter at a bank. Would appreciate any insights from those who have been in or are familiar with this space. Thanks!
Based on the most helpful WSO content, here are some insights that might help you decide between starting in REPE Asset Management (AM) or as an Affordable Housing Lending/Equity Underwriter at a bank:
Experience and Exposure:
Networking and Career Progression:
Compensation and Long-term Goals:
Personal Preferences:
Ultimately, the decision depends on your long-term career goals, personal preferences, and the specific opportunities available at each firm. Both paths have their own advantages and can lead to successful careers in real estate private equity.
Sources: Ask Me Anything: REPE Investment Professional, Career Advice: Family Office (RE Developer) --> MBA --> REPE, Need some advice on breaking into REPE, Development vs. REPE, HELP - Career Path in REPE Asset Management?
Are you trying to affordable finance regardless of bank underwriting or REPE or AM? Or is the affordable UW just a stepping stone
I’m not necessarily set on affordable housing, but I do think it’s a solid asset type since it tends to be more resilient. I’m trying to figure out if affordable UW is a good stepping stone for REPE or something worth sticking with long-term which also works for me.
My concern is getting too comfortable with the good wlb and pay but feeling monotonous in the future, then finding it difficult to pivot later due to skillsets and experience that might not transfer easily to other roles.
Yes depending on the bank, there’s solid deal flow since affordable demand is so strong. Also like ^ said, the transactions can be complex / interesting to dig into. However yes, the pay isn’t top tier but for the better hours it evens out. I work like 50ish a week, maybe more in busy seasons.
I am currently an affordable housing UW at a bank. I honestly didn’t plan to stay long but the pay, benefits, PTO, coworkers, and management make me want to just chill and stay. 40 hours a week, sometimes less, is awesome. We have busy seasons too, 1 or 2 quarters a year you’re working 60 hour weeks.
I learn something new every week. Maybe a few years from now I’ll want to move because once you get up there it probably feels monotonous.
I wonder if you’re talking about the job opening at my bank…
WLB and pay at banks are definitely appealing. I’ve heard the same from people at banks—they find it relatively chill while still earning a decent salary. The UW position offers a competitive salary, especially outside of NYC, which means a higher quality of life. In contrast, the AM role at REPE in NYC offers less and can be sweaty, like many jobs in the city.
What do you see as your next step if you move? If you stay longer, are you going to focus more on anything beyond underwriting?
I think the biggest change outside of working at a bank that I would be interested in would be development jsut because that would interest me more and be more rewarding.
However there’s lots of roles I’ve had the opportunity to lateral to within my affordable group, such as on the Production or Asset Management.
It’s exposure and if there’s nothing else available, exposure > null.
Affordable underwriting also pose more challenges than conventional transactions, whether you’re dealing with bonds, tax credits, State, County, Jurisdictional-imposed affordability restrictions. You’ll learn a lot and it’s a great foundation.
On the other hand, you can sit in an underwriter seat for the rest of your life, get paid $2-$300k and retire from there.
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